By Elle Soderberg, Wisconsin DNR Forest Products Specialist
Wisconsin’s forest products industry continues to navigate a challenging market environment as mills, loggers and other industry partners respond to changing demand, limited pulpwood markets and broader economic uncertainty.
The Wisconsin DNR Forest Products Services team regularly connects with forest industry partners throughout the state to better understand regional and statewide market conditions. Recent conversations indicate that while portions of the industry remain stable, pressure continues across several key markets.
One of the most significant challenges remains Wisconsin’s pulp and paper sector. Recent mill closures have reduced available outlets for pulpwood and disrupted traditional fiber flows. The Ahlstrom mill in Kaukauna has resumed purchasing wood, but volumes remain limited as the market continues to adjust following the closure of Ahlstrom’s pulp mill in Mosinee. Suppliers with established contracts have generally experienced typical seasonal fluctuations, while those displaced by mill closures have faced greater difficulty finding new markets.
Conditions in the hardwood lumber market also remain difficult. Timber is generally available, but mills report that log costs remain high relative to finished lumber prices. Weak housing and construction activity has further reduced demand for hardwood products traditionally used in flooring, cabinetry and trim. White oak has been particularly affected, with green 4/4 FAS white oak prices falling nearly 24% over the past year and approximately 30% compared with two years ago.
Logging operations continue to feel the effects of these market conditions. Limited pulpwood outlets, changing weather patterns, increased fuel prices, and workforce availability remain persistent concerns. Wisconsin has ample harvestable timber, but some landowners are finding it increasingly difficult to secure logging contractors, while reduced demand is limiting economically viable markets for harvested material.
There are, however, some positive market signals. Industry contacts reported stronger demand for hickory, cherry and hard maple, while some Wisconsin and Lake States producers have experienced improved export opportunities. Strong demand from European and Asian markets has helped certain producers offset weakness elsewhere in the market.
Other wood markets remain mixed. Hardwood pallet production continues to lose market share to softwood, creating concern about the stability of low-grade markets. Railroad tie demand is also expected to soften, with the Railroad Tie Association forecasting demand of approximately 19.7 million ties in 2026 and 19.2 million in 2027.
Looking ahead, Wisconsin’s forest products industry is expected to remain cautious. While some sectors are showing signs of stability or growth, overall activity remains below full capacity. Future conditions will depend heavily on pulpwood market adjustments, housing and construction activity, broader economic conditions and the industry’s ability to adapt to changing markets.